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2013 (1) TMI 536 - HC - Income TaxAddition on account of diesel expenses – Bogus purchase – Cash Purchase – Held that:- Assessee has submit the confirmatory letter given by the officer in charge of Bharat Petroleum Limited stating that diesel worth Rs. 82,20,254/- was supplied by it to the assessee. The confirmatory letter issued by BPCL clearly mentioned that the bills issued to the assessee have also been verified before issuance of the certificate. Considering the fact that the petrol pump of Bharat Petroleum Limited was run by the company itself. Therefore, certificate could not be doubted. – In favour of assessee Addition made u/s. 41(1) - Cessation of trading liability – A.O. added the old creditor standing in the books as income under the provisions of section 41(1) – Held that:- The liability of the assessee has ceased to exist in the year under consideration, either by operation of law, or by mutual contract between the parties. There in no declaration by the assessee that it does not intend to honour its liabilities nor is there any discharge of the debt. In the aforesaid premises, as no event had taken place in the year under consideration to indicate remission or cessation of the liabilities in question, the provisions of section 41(1) could not have been invoked. No question of law involved - Decides against revenue
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